General Contractor Permits & Licenses in Orem, UT

Complete guide to permits and licenses required to start a general contractor in Orem, UT. Fees, renewal cycles, and agency contacts.

Utah LLC Registration (Articles of Organization)

Utah Division of Corporations and Commercial Code
Required
Fee: $54.00-$54.00
Renewal: one time
Type: registration

Required for all LLCs. Annual renewal report also required (see separate entry).

Utah LLC Annual Renewal Report

Utah Division of Corporations and Commercial Code
Required
Fee: $18.00-$18.00
Renewal: annual
Type: registration

Applies to all LLCs. File online via OneStop Business Registration.

Contractor License

Utah Division of Occupational and Professional Licensing (DOPL)
Required
Fee: $225.00-$225.00
Renewal: biennial
Type: license

Required for all general contractors. Classifications include B100 (General Building Contractor). Prerequisites: qualifier exam (via PSI), 2+ years experience or equivalent, pre-licensure course. License must be obtained before bidding/contracting jobs over $3,000.

Contractor Financial Responsibility Reporting (Surety Bond)

Utah Division of Occupational and Professional Licensing (DOPL)
Required
Fee: $15000.00-$15000.00
Renewal: biennial
Type: registration

All contractors must file proof of surety bond or cash deposit with Utah State Insurance Fund. Bond amounts vary by license classification (e.g., $15,000 for B100).

Sales Tax License

Utah State Tax Commission
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: registration

Required if business sells materials/supplies subject to sales tax. Many contractors need this for material sales. Renewed automatically unless changes.

DBA (Assumed Name Registration)

Utah Division of Corporations and Commercial Code
May Apply
Fee: $22.00-$22.00
Renewal: one time
Type: registration

File DBAs with Division of Corporations. Renew every 5 years ($22). Not required if using exact legal name.

Utah Sales and Use Tax License

Utah State Tax Commission
May Apply
Fee: $21.00-$21.00
Renewal: one time
Type: registration

General contractors in Utah are generally required to collect sales tax on materials and equipment used in construction projects unless the customer provides a valid resale or exemption certificate. Registration is mandatory for those making taxable sales.

Utah Withholding Tax Account Registration

Utah State Tax Commission
May Apply
Renewal: one time
Type: registration

Employers must withhold state income tax from employee wages. This applies to all employers with Utah-based employees, regardless of where the business is headquartered.

Utah Employer Unemployment Insurance (UI) Tax Registration

Utah Workforce Services
May Apply
Renewal: one time
Type: registration

All employers with one or more employees in Utah must register for unemployment insurance tax. New employers pay a standard rate for the first few years, then rates are experience-rated.

Utah State Income Tax Registration for Pass-Through Entities

Utah State Tax Commission
May Apply
Renewal: one time
Type: registration

By default, LLCs are pass-through entities and do not pay entity-level income tax in Utah. However, if the LLC elects corporate taxation, it must file Form TC-20U (Utah Corporation Franchise/Income Tax Return) annually.

Utah Local Business License or Privilege Tax

Varies by municipality
May Apply
Fee: $25.00-$100.00
Renewal: one time
Type: registration

Most Utah municipalities require a local business license or privilege tax. For example, Salt Lake City charges $50/year for a general contractor. Contact city clerk offices directly for specific requirements. Examples: https://www.slc.gov/businesslicense, https://www.sandy.utah.gov/business-license/

Utah Energy Code Compliance

Utah Department of Commerce – Energy Office
May Apply
Fee: $0.00-$5000.00
Renewal: one time
Type: permit

Based on 2021 International Energy Conservation Code (IECC). Requires energy modeling, insulation ratings, HVAC efficiency, and lighting plans. Inspections required at rough-in and final stages.

Utah Franchise Tax (for corporations only)

Utah State Tax Commission
May Apply
Fee: $100.00-$100.00
Renewal: one time
Type: permit

Utah imposes a franchise tax on corporations based on capital or net worth. LLCs not electing corporate taxation are not subject to this tax. The minimum franchise tax is $100. See Utah Code § 59-11a-302.

Federal Employer Identification Number (EIN)

Internal Revenue Service (IRS)
May Apply
Renewal: one time
Type: registration

Even single-member LLCs may need an EIN for banking or tax purposes. Obtained via IRS Form SS-4 or online application.

Utah Contractor License (DOPL)

Utah Division of Occupational and Professional Licensing (DOPL)
May Apply
Fee: $150.00-$150.00
Renewal: one time
Type: license

Required for general contractors working on residential or commercial projects over $3,000. Exemptions exist for handymen under $3,000. Must pass exam and obtain bond.

Workers’ Compensation Insurance

Utah Labor Commission
May Apply
Fee: $3.00-$10.00
Renewal: one time
Type: certificate

Coverage must be maintained continuously. Self-insurance possible with state approval.

Salt Lake County Business License

Salt Lake County Clerk
May Apply
Fee: $100.00-$300.00
Renewal: annual
Type: license

General contractors classified under construction trades; requires state contractor license number

Salt Lake City Business License

Salt Lake City Corporation
May Apply
Fee: $125.00-$125.00
Renewal: annual
Type: license

Separate license required for each location; construction contractors must list state license

Utah County Business License

Utah County Clerk/Auditor
May Apply
Fee: $105.00-$105.00
Renewal: annual
Type: license

General contractors require proof of state registration

Provo City Business License

Provo City Licensing Division
May Apply
Fee: $100.00-$200.00
Renewal: annual
Type: license

Contractors must comply with state DOPL licensing

Zoning Compliance Verification

City/County Planning & Zoning
May Apply
Fee: $0.00-$100.00
Renewal: one time
Type: permit

Must verify property zoned for construction business use; home-based may need conditional use permit

Home Occupation Permit

Varies by city/county (e.g., Salt Lake City)
May Apply
Fee: $50.00-$150.00
Renewal: one time
Type: permit

Limited to administrative work only for contractors; no storage of equipment/vehicles

Building Permit for Office/Shop Modifications

Local Building Department (e.g., Salt Lake City Building Services)
May Apply
Renewal: one time
Type: permit

Required for interior improvements over certain thresholds

Sign Permit

Local Planning Department (e.g., Salt Lake City)
May Apply
Fee: $75.00-$300.00
Renewal: one time
Type: permit

Must comply with local sign ordinance size/height limits

Fire Department Occupancy Inspection/Certificate

Local Fire Marshal (e.g., Unified Fire Authority)
May Apply
Fee: $100.00-$500.00
Renewal: one time
Type: permit

Required for offices/shops with public access or hazardous materials storage

Fire Alarm System Permit

Salt Lake City Fire Department
May Apply
Fee: $150.00-$150.00
Renewal: one time
Type: permit

Annual inspection often required post-install

Parking Plan Review/Traffic Impact Permit

Local Engineering/Public Works (e.g., Orem City Engineering)
May Apply
Fee: $250.00-$1000.00
Renewal: one time
Type: permit

Ensures adequate on-site parking per zoning code

Noise Ordinance Compliance Permit

Varies by locality (e.g., Salt Lake City Code Enforcement)
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: permit

Typically complaint-driven; variance needed for non-standard hours

Workers' Compensation Insurance

Utah Labor Commission - Division of Industrial Accident
May Apply
Fee: $1.50-$3.50
Renewal: one time
Type: certificate

Exempt if sole proprietor with no employees; partners and corporate officers may elect out by filing form UCF-1. All employers with employees must carry coverage under Utah Code §34A-2-201.

General Liability Insurance

Not applicable (no state mandate)
Required
Fee: $500.00-$2000.00
Renewal: one time
Type: certificate

Not mandated by Utah state law, but often required by contracts, municipalities, or project owners. Strongly recommended for risk protection.

Contractor License Bond

Utah Division of Occupational and Professional Licensing (DOPL)
May Apply
Fee: $150.00-$600.00
Renewal: one time
Type: certificate

A $15,000 surety bond is required for all general contractors applying for licensure under Utah Admin. Code R156-1f-302. Required to protect consumers from fraudulent or unethical practices.

Utah Building Code Compliance

Utah Division of Occupational and Professional Licensing (DOPL)
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: permit

Based on International Building Code (IBC). Covers structural, fire, egress, and safety standards. Adopted by reference; contractors must follow approved plans and inspection protocols.

Commercial Auto Insurance

Utah Department of Public Safety - Driver License Division
May Apply
Fee: $1200.00-$2500.00
Renewal: one time
Type: certificate

Utah's Financial Responsibility Law (Utah Code §41-12a-102) requires liability insurance for all motor vehicles registered to a business. Minimum limits: $25,000 bodily injury per person, $65,000 per accident, $15,000 property damage.

Professional Liability / Errors and Omissions Insurance

Not applicable
Required
Fee: $500.00-$1500.00
Renewal: one time
Type: certificate

Not required by Utah law or DOPL for general contractors. However, may be required by clients or subcontracting agreements. Recommended for design-build or project management services.

Product Liability Insurance

Not applicable
Required
Renewal: one time
Type: certificate

Not specifically required by Utah law. General contractors who manufacture or install defective products may be subject to liability claims, but no standalone product liability mandate exists. Coverage often included in broader liability policies.

Liquor Liability Insurance

Utah Department of Alcoholic Beverage Control (DABC)
May Apply
Renewal: one time
Type: certificate

Only required if contractor hosts events where alcohol is served. Not applicable to standard construction operations. No general mandate for contractors.

Commercial General Liability Insurance

Utah Division of Occupational and Professional Licensing (DOPL)
May Apply
Fee: $1.00-$1.00
Renewal: one time
Type: certificate

While Utah state law does not set statutory minimums, DOPL and most project owners require $1M per occurrence / $2M aggregate limits. Proof of insurance (COI) is typically required for license renewal and project contracts.

Obtain an Employer Identification Number (EIN)

Internal Revenue Service (IRS)
Required
Renewal: one time
Type: permit

Required for all LLCs that have employees, operate as a corporation or partnership, or file specific tax returns (e.g., employment, excise, alcohol, tobacco, firearms). Even single-member LLCs without employees may need an EIN for banking or contractor purposes.

Federal Income and Self-Employment Tax Filing Obligations for LLC

Internal Revenue Service (IRS)
Required
Renewal: one time
Type: filing

A single-member LLC is disregarded for federal tax purposes and reports income on Schedule C of Form 1040. Multi-member LLCs are taxed as partnerships and must file Form 1065. All members pay self-employment tax on net earnings via Schedule SE. General Contractors must track project income/expenses accordingly.

OSHA Workplace Safety Compliance

Occupational Safety and Health Administration (OSHA)
May Apply
Fee: $100.00-$100.00
Renewal: one time
Type: permit

Applies to all contractors with employees. Requires maintaining a safe worksite, providing hazard training (e.g., fall protection, scaffolding, electrical), posting OSHA Form 300A (if 11+ employees), and reporting fatalities or hospitalizations within 8–24 hours. Construction-specific standards apply under 29 CFR 1926.

OSHA Mandatory Posting of Workplace Rights and Information

Occupational Safety and Health Administration (OSHA)
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: permit

Employers must display OSHA Form 2203 (Job Safety and Health Protection) at a visible workplace location. Available for free download from OSHA website.

ADA Compliance for Customer Communications and Physical Access

Department of Justice (DOJ)
May Apply
Renewal: one time
Type: permit

General Contractors must comply with ADA Standards for Accessible Design when building or altering facilities open to the public. Also applies to digital communications (websites, ads) under Title III. Applies regardless of number of employees.

EPA Lead Renovation, Repair, and Painting Rule (RRP)

Environmental Protection Agency (EPA)
May Apply
Fee: $375.00-$375.00
Renewal: one time
Type: permit

Requires firm certification, use of certified renovators, lead-safe work practices, and proper documentation. Applies to interior and exterior work disturbing more than 6 sq ft of paint. Contractors must provide EPA-approved disclosure form to property owners/tenants.

EPA Asbestos NESHAP Compliance

Environmental Protection Agency (EPA)
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: permit

Contractors must notify EPA or authorized state agency before demolishing or renovating structures with RACM. Applies to projects disturbing >260 ft² of friable asbestos or >160 ft² of non-friable asbestos. Includes requirements for wetting, containment, and disposal.

FTC Compliance with Truth-in-Advertising and Consumer Protection Rules

Federal Trade Commission (FTC)
Required
Renewal: one time
Type: permit

General Contractors must avoid deceptive advertising (e.g., false claims about licensing, pricing, or results). Must honor estimates vs. quotes distinction. Applies to online ads, door-to-door solicitations, and door-hanger flyers. Must comply with FTC’s “Rules of the Road” for contractors.

Fair Labor Standards Act (FLSA) Wage and Hour Compliance

U.S. Department of Labor (DOL)
May Apply
Renewal: one time
Type: permit

Requires payment of federal minimum wage ($7.25/hour), overtime (1.5x regular rate after 40 hours/week), and proper recordkeeping. Applies to all employees regardless of role. Independent contractor classification must meet DOL criteria to avoid misclassification penalties.

Annual Report Filing for Utah LLC

Utah Division of Corporations and Commercial Code
Required
Fee: $18.00-$18.00
Renewal: annual
Type: permit

All Utah LLCs must file an Annual Report each year to remain in good standing. The report can be filed online through the Utah Division of Corporations portal.

Utah Contractor License Renewal

Utah Division of Occupational and Professional Licensing (DOPL)
May Apply
Fee: $208.00-$208.00
Renewal: biennial
Type: license

General contractors in Utah must hold a license issued by DOPL. The license must be renewed biennially. Renewal reminders are sent 60 days in advance.

Utah Contractor Continuing Education Requirement

Utah Division of Occupational and Professional Licensing (DOPL)
May Apply
Fee: $120.00-$300.00
Renewal: biennial
Type: certificate

Contractors must complete 6 hours of board-approved continuing education per renewal cycle, including 2 hours of business and law and 4 hours of trade-specific content.

Family and Medical Leave Act (FMLA) Compliance

U.S. Department of Labor (DOL)
May Apply
Renewal: one time
Type: permit

Requires eligible employers to provide up to 12 weeks of unpaid, job-protected leave per year for qualifying medical/family reasons. Must post FMLA notice and maintain records.

I-9 Employment Eligibility Verification

U.S. Department of Homeland Security (DHS) / USCIS
May Apply
Renewal: one time
Type: permit

Must complete Form I-9 for every employee, verify identity and work authorization documents, and retain for 3 years after hire or 1 year after employment ends, whichever is later. E-Verify is voluntary in Utah unless under federal contract.

Maintain Records for Davis-Bacon Act Compliance

Department of Labor (DOL)
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: permit

Requires payment of prevailing wages and benefits as specified in the contract’s wage determination. Must keep daily payroll records for three years. Applies to contractors and subcontractors on covered projects.

Utah State Contractor License

Utah Division of Occupational and Professional Licensing (DOPL)
May Apply
Fee: $150.00-$300.00
Renewal: one time
Type: permit

Requires passing exams, financial responsibility, and continuing education. License types include Residential, Commercial, and Specialty. Must carry proof of license on job site.

Federal Employer Identification Number (EIN) Annual Filing Requirement

Internal Revenue Service (IRS)
May Apply
Renewal: annual
Type: filing

While the EIN itself does not require renewal, businesses with employees must file employment taxes quarterly (Form 941) and annually (Form 940). Businesses issuing 1099-NEC must file by January 31.

Utah State Business License Renewal

Utah Department of Commerce, Division of Occupational and Professional Licensing (DOPL)
Required
Fee: $78.00-$78.00
Renewal: one time
Type: license

All businesses operating in Utah must register for a State Business License through the Utah Tax Commission. This license must be renewed annually.

Workers’ Compensation Insurance Registration and Reporting

Utah Labor Commission, Industrial Accidents Division
May Apply
Fee: $1.00-$5.00
Renewal: annual
Type: certificate

Utah law requires all employers with employees to carry workers’ compensation insurance. Employers must register with a certified insurer and report payroll changes annually.

Display of Utah Contractor License

Utah Division of Occupational and Professional Licensing (DOPL)
May Apply
Renewal: one time
Type: permit

Contractors must display their license number on all advertisements, contracts, vehicles, and business documents.

Display of Federal and State Labor Law Posters

Utah Department of Workforce Services
May Apply
Renewal: one time
Type: permit

Employers must display current posters on wage and hour laws, OSHA safety rights, EEO, and family leave. Utah-specific posters include the Utah Antidiscrimination Act notice.

Sales and Use Tax License Renewal

Utah State Tax Commission
May Apply
Renewal: one time
Type: license

Contractors must collect and remit sales tax on materials and certain services. Filing frequency is assigned by the Tax Commission based on expected tax liability.

OSHA Injury and Illness Recordkeeping

Occupational Safety and Health Administration (OSHA)
May Apply
Renewal: annual
Type: permit

Employers in construction must maintain OSHA Form 300 (Log of Injuries), Form 300A (Summary), and Form 301 (Incident Report). Form 300A must be posted annually.

Utah Business Records Retention

Utah State Archives
Required
Renewal: one time
Type: permit

Utah recommends retaining business records (e.g., contracts, tax documents, licenses) for at least 7 years. LLC formation documents should be kept permanently.

Federal Estimated Income Tax Payments

Internal Revenue Service (IRS)
May Apply
Renewal: varies
Type: permit

Self-employed individuals in an LLC must make quarterly estimated tax payments for federal income and self-employment taxes using Form 1040-ES.

Utah Estimated Income Tax Payments

Utah State Tax Commission
May Apply
Renewal: varies
Type: permit

Individuals making over $12,000 in Utah-source income must make quarterly estimated tax payments using Form IT-10ES.

Step-by-Step Compliance Guide

  1. General contractors in Orem, Utah, must comply with federal regulations regarding truth-in-advertising and consumer protection through the Federal Trade Commission (FTC).
  2. The IRS requires all LLCs to fulfill federal income and self-employment tax obligations, with fees varying based on income.
  3. Maintaining accurate record retention is a federal requirement enforced by the IRS for tax and licensing purposes.
  4. Obtain an Employer Identification Number (EIN) from the IRS, which is essential for tax reporting and business operations.
  5. Federal income tax filing is a mandatory obligation for LLCs, overseen by the Internal Revenue Service (IRS).
  6. The U.S. Small Business Administration (SBA) confirms there’s no federal general contractor license requirement, though compliance with other regulations is still necessary.
  7. Ensure your business adheres to the FTC’s Home Improvement Rule, which protects consumers in home renovation projects.
  8. Contractors serving the public must comply with the Americans with Disabilities Act (ADA) as enforced by the Department of Justice (DOJ).

Common Mistakes to Avoid

  • Assuming a single, comprehensive federal license covers all general contracting activities.
  • Ignoring the FTC’s requirements for truthful advertising and consumer protection.
  • Failing to obtain an EIN, even if operating as a single-member LLC.
  • Neglecting to retain accurate financial records for tax purposes.
  • Overlooking federal income and self-employment tax obligations for LLCs.

Frequently Asked Questions

Are there any federal licensing requirements for general contractors in Orem, Utah?

No, the U.S. Small Business Administration (SBA) states there is no federal general contractor license requirement; however, you still need to comply with federal regulations like those from the FTC and IRS.

What are the potential costs associated with federal compliance?

Fees vary depending on the specific requirement and your business’s income; IRS tax obligations and some FTC compliance areas have variable fees, while others, like initial FTC compliance, may be $0.00.

What is the FTC’s role in regulating general contractors?

The Federal Trade Commission (FTC) enforces truth-in-advertising and consumer protection laws, ensuring fair business practices and protecting consumers from deceptive tactics.

How often do I need to renew these federal requirements?

Most of the listed federal requirements are one-time obligations, but it’s crucial to maintain ongoing compliance with tax laws and regulations, which require annual filings.

What is an EIN and why do I need one?

An Employer Identification Number (EIN) is a unique tax ID number assigned by the IRS to businesses operating as corporations or partnerships; it's required for tax reporting and opening a business bank account.

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